Nucor Projects Q4 Earnings to Decline on Lower Selling Prices

Core Viewpoint - Nucor Corporation (NUE) anticipates a significant decline in fourth-quarter 2024 earnings, projecting between 55 and 65 cents per share, down from $1.05 in the previous quarter and $3.16 in the same quarter last year [1][2]. Financial Performance - Nucor reported non-cash charges of $83 million (27 cents per share) and $40 million (17 cents per share) for asset impairments in the raw materials and steel products segments, respectively, during the third quarter of 2024 [1]. - The steel mills segment is expected to experience lower earnings due to decreased volumes and average selling prices, contributing to the overall decline in profitability [2]. Shareholder Returns - In the fourth quarter, Nucor repurchased approximately 2.1 million shares at an average price of $149.81 per share, returning over $2.73 billion to shareholders through share repurchases and dividends this year [3]. - Nucor's shares have declined by 32% over the past year, compared to a 27.9% decline in the industry [3]. Market Position - Nucor currently holds a Zacks Rank of 5 (Strong Sell), indicating a challenging market position [3]. - In contrast, other companies in the basic materials sector, such as Carpenter Technology Corporation (CRS) and New Gold Inc. (NGD), have shown stronger performance and higher rankings [4][5].